The landscape of marketing measurement is undergoing a transformative shift. Marketing Mix Modelling (MMM), a proven methodology that has grown increasingly sophisticated due to technological advances, is set to take centre stage. As a result of this resurgence, the industry is witnessing a pivotal moment that will redefine campaign analysis and marketing investment strategy.
At its core, MMM is a statistical analysis technique that identifies the impact of multiple variables on sales. It considers numerous factors, including offline and online advertising and external influences like seasonality and weather. MMM operates on the principle that a brand’s sales funnel is influenced by a combination of these factors.
The MMM analysis could reveal that some of the company’s online activities had less impact on sales while offline advertising played a greater role than previously assumed. By analysing all these factors together, MMM models provide highly informative insights into the most effective marketing strategies. This then helps the company to decide how to allocate its marketing budget for optimal results.
Gary Danks, General Manager, AIM by Kochava, said: “Historically, the analytical process underlying MMM was tedious and time-consuming, demanding a data science team to scrutinise marketing campaign data over many months. Fortunately, the narrative has dramatically changed, with technological advancements pushing MMM into the forefront of marketing measurement methods. Modern analytics tools, such as machine learning algorithms and predictive modeling, can uncover complex relationships between marketing activities and outcomes, enabling marketers to analyse vast datasets more effectively.
“Now MMM integrates data from various sources, including online and offline channels, CRM systems, and third-party data providers, which in turn provides a more comprehensive view of the marketing performance. To implement MMM successfully, B2B marketers should consider gathering data from all relevant marketing channels, including but not limited to advertising spend, website traffic, email marketing, events, and lead generation. Implementation may also require expertise in statistical modeling and marketing analytics, which may help in building efficient, dynamic and reliable models.
“MMM is the clear path forward. The rapidity of change within the marketing realm means that choosing MMM is not just beneficial, it’s essential for staying ahead of the curve. As marketers step into this new era, equipped with real-time data and comprehensive insights, the future of marketing data is brighter than ever. The transition may require time as marketers learn a new skill, but it’s a decision that will undoubtedly redefine the trajectory of their business”, concluded Danks.
About Kochava
Kochava Inc. is a real-time data solutions company offering the leading omni-channel measurement and attribution solutions for data-driven marketers. The Marketers Operating System™ (m/OS) from Kochava empowers advertisers and publishers with a platform that seamlessly integrates and manages customer identity, measurement and data controls. Unlike complicated, siloed tech stacks, the m/OS takes the next step: unifying all of your data and critical omni-channel solutions into a cohesive, operational system that goes beyond data aggregation and reporting, providing the foundation for limitless advertiser and publisher tools. By design, m/OS facilitates success by making data accessible and actionable to maximize ROI.
With a culture of customer-driven innovation, dedication to data security, and the most powerful tools in the ecosystem, Kochava is trusted by top brands to harness their data for growth. Headquartered in Sandpoint, Idaho, the company has offices globally.
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